In a good news for TCS employees, 4 lakh employees out of the total 6 lakh staff are getting a 20 per cent Christmas salary hike, while the remaining about 30 per cent employees will receive performance-based compensation. This comes after the company announced a 100 per cent variable pay for 70 per cent of its staff, compared with 10-20 per cent as variable compensation earlier.
According to a media report, India’s largest IT services company TCS is giving a 20 per cent Christmas salary hike to 70 per cent of its employees, and a performance-based hike to the remaining staff.
However, a company official, who did not want to be named, denied the reports on the salary hike and told news18.com that these reports are “false”.
Variable pay, better understood as performance pay, depends primarily on the company’s performance. TCS reported Rs 10,431 crore net profit in the July-September quarter of 2022, crossing the Rs 10,000 crore mark for the first time in a quarter.
After announcing the company’s financials for the September 2022 quarter, TCS chief human resource officer Milind Lakkad had said, “We are going to pay 100 per cent variable pay for 70 per cent of employees… the remaining 30 per cent will get paid based on their business unit performance. This is for Q2 (July-September).”
The move to implement a 100 per cent variable payout comes after TCS rivals Wipro and Infosys reduced variable compensation for their staff in the first quarter, as did TCS. Entry-level employees at Wipro only received 70 per cent of the variable remuneration that senior personnel received. Infosys followed suit and set a limit on total employee remuneration at 70 per cent of the previous level.
During July-September 2022, Tata Consultancy Services (TCS) reported a net addition of 9,840 employees. With this, the company’s workforce as of September 30, 2022, stood at 6,16,171. The net addition during Q2FY23 is lower than the 14,136 net addition recorded in the previous quarter.
TCS’ workforce was at 616,171 as on September 30, 2022, a net addition of 9,840 during the quarter. The workforce continues to be very diverse, comprising 157 nationalities and with women making up 35.7 per cent of the base. TCS has been meeting demand for services around new technologies by continually investing in organic talent development.
Its attrition rate in IT services stood at 21.5 per cent during the September 2022 quarter, which is higher than the 19.7 per cent registered in the previous quarter. The attrition rate in the March quarter was 17.4 per cent.
TCS reported a consolidated net profit of Rs 10,431 crore for the September 2022 quarter, a jump of 8.4 per cent on a year-on-year basis. The company’s revenue during April-June 2022 also rose 18 per cent to Rs 55,309 crore, compared with Rs 46,867 crore in the year-ago period.
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